because it was looking for dbo.tblinfo table. That is the problem all the time when you don't create the table with dbo.tablename. It is sometimes a hasle to clean up after user, and sometimes some process failed as a result of this extra feature.

But why is it looking for dbo.tblInfo when I am logged in as Appuser. And why is it that this sp works on ever other server i've installed on, except this one! There must be some config or something, no?

And no, I can't make dbo the owner. It is a requirement that a named owner is assigned.